Public and Private Partnerships for the Development of Infrastructure to Facilitate Trade and Transport. SSATP Program Initiatives
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1 Multi-year Expert Meeting on Transport and Trade Facilitation: Public and Private Partnerships for the Development of Infrastructure to Facilitate Trade and Transport 8-10 December 2009 SSATP Program Initiatives by Jean Kizito KABANGUKA SSATP Regional Coordinator E&S Africa World Bank This expert paper is reproduced by the UNCTAD secretariat in the form and language in which it has been received. The views expressed are those of the author and do not necessarily reflect the view of the United Nations.
2 Transport and Trade Facilitation, Public Private Partnership in Transport Infrastructure SSATP Program Initiatives Jean Kizito KABANGUKA SSATP Regional Coordinator E&S Africa Multi-year Expert Meeting on Transport and Trade Facilitation Public and private partnerships for the development of infrastructure to facilitate trade and transport In this presentation Introduction The SSATP Landlocked Countries and Corridor Initiatives Improving Transit Transport Corridors Transport Monitoring System PPP and Transport Facilitation Other Initiatives Conclusion Geneva, 8 10 December 2009 Introduction Transport and trade facilitation Infrastructure and services have become essential components for developing countries competitiveness in the global market Governments are increasingly seeking private partners for the financing, building, operation and maintenance of such infrastructure and services. Public private partnerships (PPPs) Implementation of the Almaty Programme of Action in Land-Locked and Transit Developing and the Millenium Development Goal The SSATP Sub Saharan Africa Transport Policy Program Unique partnership of 35 African countries, 8 regional economic communities, 3 African institutions - AU/NEPAD, ADB and UNECA, national and regional organizations as well as international development partners SSATP Knowledge production instrument and information sharing Hub 35 Sub Saharan African Countries 15 Public and Private Sector Regional & Sub-Regional Organizations International Organizations AU Commission & NEPAD Secretariat UNECA ILO USAID Regional Economic Communities CEMAC COMESA EAC ECCAS ECOWAS IGAD SADC UEMOA 1/7 Donors EC Denmark France Ireland Norway Sweden UK IsDBank Af Bank World Bank The SSATP 2/7 The SSATP Strategic Framework 3/7
3 The SSATP Strategic Framework 4/7 SSATP and Trade Transport Facilitation 5/7 Revised Northern Corridor Transit Agreement North South Corridor Agreement Drafting Central Corridor Protocols Drafting CICOS Protocol on River Transport Measures to improve institutional capacity to implement appropriate policies and strategies Measures to improve safety and security along corridors RECs and corridor groups use methodology developed by SSATP to establish and operate observatories REC-TCC disseminates SSATP best practices on corridor management Harmonized legislation to reduce delays and improve movement of freight and people ¾Establishment of Corridor Management Group RECs and corridor groups use methodology developed by SSATP to establish and operate observatories Improving Transit Transport Corridors ¾REC TCC disseminate Best Practices Compendium of Africa Legal Instruments on Trade and Transport Facilitation Study on Axle load and Overload Control in Eastern and Southern Africa Legal framework of One Stop Border Post ¾Measures to Improve Institution Capacity REC Transport Coordination Committee Nation Coordination Mechanism ¾Measures to Improve Safety and Security ¾RECs and corridor groups use methodology developed by SSATP to establish and operate observatories 6/7 1/5 RECs and corridor groups use methodology developed by SSATP to establish and operate observatories 7/7 Improving Transit Transport Corridors 2/5
4 Improving Transit Transport Corridors3/5 Landlocked Countries Vs Transport Corridors The impact of being landlocked is based on the idea of dependence over the transit state, which implies high transaction costs Mitigating measures for landlocked countries result of two set of actions: Developing a legal framework in treaties and regional agreements aimed at ensuring transit freedom, Developing regional transport infrastructure. (WB: 14 Billion USD from 1970 to 2007 in SSA) Nevertheless Transport prices in Africa remain the highest in the world Transaction costs in general remain very heavy Most regional transit agreements remain on paper Improving Transit Transport Corridors4/5 Transaction related to transit processes Port of Rail Multimodal Road Border National Clearance Entry Transit Transfer Transit Crossing Transit Destination checkpoint Transit is a process of delayed customs clearance. Improving Transit Transport Corridors5/5 High Transport Cost Freight tariff USD per Ton/km USA 0.02 USD par T/Km, Kenya 0.04 per T/Km, Uganda per T/Km, Rwanda per T/Km Niger 0.13 per T/Km Congo DRC 0.12 per T/Km Burundi 0.11 per T/Km Burkina Faso 0.09 per T/Km Transaction Costs (Freight as % of value of imports) 8% en Europe, 11% en Afrique, 30% Afrique de l Est, 35 % - 40% Rwanda, Burundi, Est de la RDC Transport Monitoring System (Observatory) Framework Which indicators? Data sources Existing computerized information Dedicated surveys where information is inadequate or missing Corridor Country Modes Nodes Volume Time Price Quality Total transit Border counts Port traffic, rail activity, etc. Total transit time Border crossing delays, etc. Port dwell time Total price Tariffs Road network, Customs fraud, etc. Fleet (rail, road), annual mileage, etc.. 1/4 Transport Monitoring System (Observatory) Delays along Selected Corridors (days) 2/4 Transport Monitoring System (Observatory) 3/4 Port Trans Port sec Frontiere Transport Destin. Fin. TOTAL Douala Ndjamena Mombasa Kampala Dar ES Kampala
5 Transport Monitoring System (Observatory) 4/4 Observatories can supply many of the data requested, Extend/compare facilitation measures across the continent to benchmark and look at best/good practices The Corridor Performance Monitoring cannot be useful tools without Effective and Integrity Data Collection Critical analysis Wide distribution of the report generated On regular basis, need to update the benchmark in order to cope with the Corridor Performance situation PPP and Transport Facilitation 1/4 Why Public Private Partnership Additional resources to meet the increase needs of investment in Infrastructure services Increased efficiency in project delivery and operation Access to advanced technology Sustainable development in Infrastructure facilities and services But The success of PPPs depends often on regulatory efficiency Change of ownership to the private sector may not be sufficient to improve performance (sector and market reform) PPP mechanism may not be suitable for all projects as it has many limitations are subject to social, political, legal and other constraints PPP and Transport Facilitation 2/4 PPP and Transport Facilitation Spatial Development Initiative (SDI) Methodology as a tool to expedite infrastructure Development by emphasizing its economic function SDI Methodology Projects as drivers of development process Clear definition and prioritization of key or anchor projects Clear elaboration of projects interdependence and need for integration for success and to achieve intended benefits Facilitate crowding in of investors and project financiers around integrated business case: (enables consulting and solving mutual concerns for quicker investment decision making) Strategic investment in infrastructure projects, funded by government, public private sector partnerships or private equity/debt financing, which Accelerates the ongoing process of investments in small to medium sized economic generator investment projects 3/4 Concession process Rail Concession Improving the business and regulatory environment for private sector-led trade and investment, Increasing access to financial services for trade and investment, and Facilitating investment in infrastructure. Results Experience RVR in East Africa SITARAIL in West Africa Spoornet in South Africa Challenges Retrenchments Infrastructure Investment Imbalance modal split Investment Return PPP and Transport Facilitation Concession process Road Concession South Africa Model Weighbridges Ports Container Terminal Maputo Dar Es Salaam Abidjan Djibouti CFSs and Inland Ports Mombasa, Bujumbura, Pipeline Concession 4/4 PPP success stories (Source: Ocean Shipping Consultants - AICD) Africa : performance and PPP arrangements Port avg moves/hour operator equipment Abidjan 20 ppp gantries Dar es Salaam 20 ppp gantries Douala 20 ppp gantries Toamasina 18 ppp mobile cr. Djibouti 17 ppp gantries Durban 15 public gantries Tema 14 ppp gantries Elizabeth 13 public gantries Apapa 12 recent ppp gantries Capetown 12 public gantries Mombasa 10 public gantries Dakar 10 recent ppp mobile cr. Maputo 10 ppp gantries Beira 9 ppp gantries Port Sudan 8 public gantries Walvis Bay 8 public ship's gear East London 8 public ship's gear Luanda 8 recent ppp ship's gear Matadi 7 public ship's gear Pointe Noire 7 public ship's gear
6 Other Initiatives East Africa Trade and Transport Facilitation Project Kenya, Uganda, Tanzania and Rwanda, CEMAC/Central Africa Trade and Transport Facilitation Project Cameroun, Tchad, RCA ; Douala corridor), West Africa Transport Facilitation Project Ghana, Burkina Faso, Mali ; Tema corridor, Abidjan-Lagos Corridor Trade and Trade Facilitation Cote d Ivoire, Ghana, Togo, Benin, Nigeria Conclusion 1/2 Transit Transport Constraints it is not just the poor quality of physical infrastructure, Non implementation of regional trade facilitation instrument is an issue More regulatory reform and harmonization is required to drive down the cost of trade Customs and Documentations procedures Border crossing procedures Removal of non physical barriers Implementation of regional trade facilitation Instruments As regions become more integrated, regulation should pass on to regional regulatory bodies Appropriate mechanisms for stakeholder involvement Effective transit agreements Increasing regional integration and trade is vital to enabling higher levels of economic diversification and foreign direct investment. The private sector can play a role in building Africa s capacity to TRADE Finally Conclusion 2/2 SSATP invites all development partners, Trade and Transport Stakeholders to use SSATP to partner for Trade and Transport Facilitation and Regional Integration SSATP offers an excellent network and a platform which can benefit to all interested parties such as researchers, civil society, private sector to exchange good practices and knowledge on key issues related to transport Available Publications on Trade and Transport Facilitation can be downloaded from Website or Contacts Program Manager svincent@worldbank.org Regional Coordinators (W&C, E&S) yadzigbey@worldbank.org jkabanguka@worldbank.org
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